Friday Briefing: From DXY, Gold to Latest FX Headlines; Sept 23, 2022

US Dollar Index Overview

  • The DXY recovers sharply from previous losses and hits highest level since May 2002.
  • It made intraday high at 112.42 and low at 111.13 mark.
  • A day Chart and H1 chart with triple EMA up down trend for the time being.
  • Immediate hurdles are seen at 112.67 to 111.82 mark.
  • A sustained close of either side on H1 chart requires for the further directions of the U.S. dollar.

Technical Analysis: XAU/USD (Gold)

  • Gold falls on Friday and slips below $1,650 mark.
  • The pair made intraday high at $1,684 and Low at $1,655 mark.
  • A day chart is down and H1 chart with triple EMA suggests up trend for the time being.
  • A sustained close above $1,675 on H1 chart requires for the upside rally.
  • Alternatively, a consistent close below $1,643 on H1 chart will test further supports.

Key Headlines for the FX market:

  • Russia launched referendums aimed at annexing four occupied regions of Ukraine, raising the stakes in the seven-month-old war with what Kyiv called an illegal sham that saw residents threatened with punishment if they did not vote.
  • The votes on whether the regions should become part of Russia began after Ukraine earlier this month recaptured large swaths of northeastern territory in a counteroffensive.
  • Some Russian technology professionals, bankers, and journalists at state media outlets will not be called up to serve in Ukraine as part of Russia’s mobilization drive, the defense ministry said.
  • Finland is considering barring most Russians from entering, amid heavy traffic into the country across its southeastern border with Russia, while the Czech Republic said it will not issue humanitarian visas to Russian citizens fleeing the mobilization orders.
  • Kazakhstan, the former Soviet republic in Central Asia, has also seen an increased number of arrivals from Russia.
  • Putin was “pushed” into invading Ukraine and wanted to put “decent people” in charge of Kyiv, former Italian premier Silvio Berlusconi has said, drawing fierce criticism just ahead of Italy’s election.
  • A U.S. aircraft carrier arrived in South Korea for the first time in about four years, set to join other military vessels in a show of force intended to send a message to North Korea.
  • Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing in an economic agenda that floored financial markets, with sterling and British government bonds in freefall.
  • A downturn in business activity across the euro zone deepened in September, according to a survey which showed the economy was likely entering a recession as consumers rein in spending amid a cost of living crisis.
  • As the Bank of Japan steps into currency markets for the first time in decades to defend a battered yen, it is running into numerous obstacles, chiefly its own stubborn commitment to ultra-easy monetary settings.

Source: Reuters

Keep an eye open for the latest news and fundamentals affecting the FX markets.

Take a look and do trade wisely!
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